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Spotify Briefly Scrapes $131 In Tuesday Trading; Goldman Sachs Says Buy!

Posted on December 25, 2017
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photo: Aditya Vas

Spotify’s stock price has been scraping newfound lows, but longtime investor Goldman Sachs says the stock is a buy at this price.  And so are many other market watchers.

SPOT briefly hit a low of $131 during today’s trading before bouncing back to $141.68 at close.  Today’s $131 low was a new 52-week nadir for the stock since its soft IPO earlier this year.

Spotify fell more than 5.8% during today’s trading, but longtime investor Goldman Sachs believes the stock is a solid buy (surprise) with a price target of around $190.  Goldman Sachs says that Spotify’s leading position across a growing number of “platforms and geographies” will ultimately drive the share price up.

Others were curbing the enthusiasm.  Analyst Heath Terry lowered his target price from $230 down to $200 “to reflect multiple compression across the comp group.”

Spotify has an upcoming earnings report on Thursday before the market opens. Analysts believe the streaming company will see continued subscriber growth, and Goldman estimates the total subscriber number at 87 million.

Despite the lulling share price, Spotify is receiving plenty of  bullish analyst expectations.

On the low-end,  analyst expectations say the stock should reach $181, while on the high-end analysts believe it could go as high as $265. 24 financial firms rate the stock as a solid buy, while six say hold and one say sell.

Compared to the buy, sell, hold ratings of 180 days ago, twelve new financial firms are saying the stock is a definite buy.

And there’s plenty to talk about at the upcoming financial pow-wow.  Spotify has been layering exclusive podcasts, playlist-powered tours, and even customized merchandise onto its platform.  Perhaps garnering the greatest attention is a direct-uploading beta within Spotify For Artists, with Distrokid assuming a key role (and possibly getting acquired in short order).